EMERYVILLE PLANNING COMMISSION STAFF REPORT Agenda
Transcription
EMERYVILLE PLANNING COMMISSION STAFF REPORT Agenda
EMERYVILLE PLANNING COMMISSION STAFF REPORT Agenda Date: September 24, 2009 Report Date: September 17, 2009 TO: Planning Commission FROM: Planning and Building Department Economic Development & Housing Department City Attorney’s Office SUBJECT: Pixar Animation Studios: Second Amendment to the Amended and Restated Development Agreement (PUD 03-01) PROJECT 1200 Park Avenue (APN: 49-1539-1, 2, 4-2, and 5; 49-1027-37; 491041-59) LOCATION: PROJECT APPLICANT: Pixar Animation Studios 1200 Park Avenue Emeryville, CA 94608 City of Emeryville Redevelopment Agency 1333 Park Avenue Emeryville, CA 94608 PROPERTY OWNERS: Pixar Animation Studios/ERPM, Inc. City of Emeryville Redevelopment Agency 1333 Park Avenue Emeryville, CA 94608 PROJECT SUMMARY: The applicant is proposing a second amendment to the Amended and Restated Development Agreement (DA) for the Pixar Animation Studios Planned Unit Development (PUD) on a site of approximately 21 acres bounded by 45th Street to the north, commercial and parking uses fronting San Pablo Avenue to the east, Park Avenue to the south, and Hollis Street to the west approved on August 14, 2008. The proposed amendment would (i) allow the City the right to utilize a portion of the Cultural Arts Center Contribution as a grant to a non-profit entity to be incorporated by the City which will utilize the funds to hire personnel to assist in programming and raising additional capital funds for the Cultural Arts Center and ; (ii) release Pixar of the obligation to sponsor a fundraising event for the Center. The Planning Commission will consider and make recommendations to the City Council on the following action: Approval V.A. Planning Commission Staff Report Pixar Animation Studios: Second Amendment to the Amended and Restated Development Agreement PUD 05-02 September 24, 2009 Page 2 of a Second Amendment to the Amended and Restated Development Agreement. GENERAL PLAN DESIGNATION: Commercial (C) ZONING DISTRICT: Planned Unit Development (PUD) Commercial ENVIRONMENTAL STATUS: A Mitigated Negative Declaration (MND), and Mitigation Monitoring and Reporting Program were adopted by the City Council on May 18, 2004. The subject amendment does not require further CEQA review. APPLICABLE ZONING ORDINANCE PROVISIONS: Section 9-4.94.12 - Amendment of Development Agreement PLANNING COMMISSION PROCEDURE After taking public testimony on the proposed amendment, the Planning Commission may take action to recommend that the City Council adopt the Second Amendment to the Amended and Restated Development Agreement RECOMMENDED PLANNING COMMISSION ACTION: 1. Open the public hearing and take testimony regarding the proposed amendment 2. Close the public hearing and consider the Staff Report and draft Resolution. 3. Approve the attached Planning Commission Resolution recommending to the City Council that it approve the Second Amendment to the Amended and Restated Development Agreement BACKGROUND: Site Characteristics The Pixar campus totals 21 acres and is bounded by 45th Street to the north, commercial and parking uses fronting San Pablo Avenue to the east, Park Avenue to the south, and Hollis Street to the west. The site includes the following elements: The original Pixar campus: Planning Commission Staff Report Pixar Animation Studios: Second Amendment to the Amended and Restated Development Agreement PUD 05-02 September 24, 2009 Page 3 The original Pixar campus was approved in 1998. It consists of a 218,000 square foot building, parking and landscaped areas, on 16.16 acres. This portion of the campus was completed in 2000. PEA Parcel and Emery Street Right of Way. These properties are located at the eastern end of the Pixar campus and are currently undeveloped. They total 2.77 acres. The PEA Parcel is 2.24 acres and was once a part of the Promenade retail center, but was purchased by Pixar in 2002 for future expansion. The northern extension of the Emery Street right-of-way, is located west of the PEA Parcel, between Park Avenue and 45th Street and is .53 acres in size. The City owns a 10 foot Public Street and Utility Easement on this right-of-way. Pixar controls the underlying fee. The Agency transferred the fee to Pixar pursuant to the terms of a 2004 Participation Agreement between Pixar and the Redevelopment Agency in exchange for the dedication of land for an approximately 40 foot wide bicycle and pedestrian path at the east end of the property. The bicycle and pedestrian path will be dedicated to the City upon commencement of Phase II of the project. The utility easement will be vacated when Pixar relocates the underlying utilities to the bicycle and pedestrian path. Hollis Property. This property is 1.89 acres and is located in the northwest corner of the project site. It is occupied by a 56,034 square foot brick building (4240 Hollis Street) and is owned by a Pixar Affliliate (ERPM, Inc.). A portion of the property is currently leased to Semifreddi’s Bakery and Café. The remainder of the building is occupied by Pixar. The Hollis property includes a .19-acre rail spur property that was previously owned by the Agency and sold to Pixar pursuant to the Participation Agreement approved in 2004. Project Phasing The existing Pixar headquarters building, including associated landscaped areas and parking facilities, was built as Phase I of an original Development Agreement and Participation Agreement approved by the City in 1998. The Development Agreement and Participation Agreement were amended in May 2004 to include the current project, totaling approximately 533,000 square feet. Project phasing set forth in the Amended and Restated Development Agreement is as follows: o Phase I Phase I consists of the existing 218,000 square foot building on the northern portion of the site. o Phase II Planning Commission Staff Report Pixar Animation Studios: Second Amendment to the Amended and Restated Development Agreement PUD 05-02 September 24, 2009 Page 4 On January 20, 2009 the City Council approved the Final Development Plan for Phase II that includes construction of a new 155,194 square foot building, a 40-foot wide linear park and complete occupancy of the “West Village” building (currently partially occupied by Semifreddi). This phase is currently under construction. o Phase III Phase III consists of construction of an office building of up to 180,250 square feet in the southeast corner of the project site, fronting on Park Avenue. Development of this Phase would require the removal of surface parking in the southeastern corner of the site, and the construction of a maximum six-story (seven-level) parking garage fronting on 45th Street immediately to the north of the building. The parking garage, which would contain up to 1,801 spaces may be constructed partially during Phase III and partially during Phase IV. Ultimately the garage would provide all required parking at buildout of the campus. o Phase IV Phase IV consists of a new 207,300 square foot building on the northwest corner of the site, fronting on Hollis and 45th Streets. This building would be two stories plus basement or three stories. It would replace the existing one-story brick industrial building on the site. o Phase III and Phase IV of the project could be interchanged, so the Hollis and 45th Street building could be constructed first. PROJECT DESCRIPTION: On August 14, 2008 the First Amendment to the Amended and Restated Development Agreement (DA) was approved. This amendment made the following modifications: Extension of the term of the Development Agreement by five years Extension of deadline for commencing Phase II improvements by 2 years Elimination of Phase III delay fee Elimination of the Capital Improvement and Services fee for Phases III and IV Elimination of Agency’s right to repurchase the PEA Parcel and the Emery Street Parcels Addition of a requirement that Pixar contribute $2 million to the Emeryville Arts and Cultural Arts Center and sponsor a fundraiser for the Center The City would now like to amend the DA such that it allows the City the right to utilize a portion of the Cultural Arts Center Contribution as a grant to a non-profit entity to be incorporated by the City which will utilize the funds to hire personnel to assist in programming and raising additional capital funds for the Cultural Arts Center. In light of the current economic climate, City and Pixar have agreed that it would be financially detrimental to Pixar’s existing annual fundraiser for the Emeryville Educational Fund if Pixar were to host a fundraiser event for the Cultural Arts Center Planning Commission Staff Report Pixar Animation Studios: Second Amendment to the Amended and Restated Development Agreement PUD 05-02 September 24, 2009 Page 5 as well. Therefore, the proposed amendment also eliminates the Pixar’s obligation to sponsor a fundraiser for the Cultural Center. STAFF FINDINGS: Staff is recommending that the Planning Commission recommend that the City Council approve the proposed amendment to the Amended and Restated Development Agreement for the following reasons: (1) It is in conformity with the following General Plan Objectives: Public Facilities and Services Objective C: Improve and expand social and recreational services and facilities for all segments of the community. The Arts and Cultural Center is an important project for the City. The successful renovation of the 30,000 square foot center will provide a focal point for the Emeryville arts community. Funding in the amount of $3.225 million has been appropriated in the Agency’s budget towards the estimated $7 million renovation costs, leaving a gap of approximately $4 million. Pixar’s $2 million contribution would fill 50 percent of this financial shortfall. Specifically, the proposed Amendment will result in providing the City more flexibility to effectively use the funds by being able to set up a non-profit entity and employ personnel that would facilitate in the Center’s programming and raising additional funds. Consistent with and Forwards General Plan Goals, Objectives, and Policies (2) It is in public interest in that it provides substantial benefits to the City of Emeryville. The proposed amendments allow better facilitation of programming and raising funds for the Arts and Cultural Center which will be a good amenity for the citizens of Emeryville. RECOMMENDATION Staff recommends that the Planning Commission recommend that the City Council approve the Second Amendment to the Amended and Restated Development Agreement. Attachments: (1) Resolution Recommending Adoption of a First Amendment to the Amended and Restated Development Agreement to the Pixar Headquarters Expansion Project (2) Draft Second Amendment (3) First Amendment and Amended and Restated Development Agreement RESOLUTION NO. DA 09-01 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF EMERYVILLE RECOMMENDING TO THE CITY COUNCIL THAT IT APPROVE A SECOND AMENDMENT TO THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT RELATING TO THE PIXAR HEADQUARTERS EXPANSION PROJECT WHEREAS, in May 1998, the City Council approved Pixar Animation Studios’ (“Pixar”) Preliminary Development Plan (PDP) application to allow for a two phase development of its corporate headquarters and animation studios on an approximately 16-acre site located between 45th Street and Park Avenue and Hollis Street and the Emery Street Right of Way in the City of Emeryville, with Phase I consisting of an approximately 215,000 square foot building, a six to seven acre private open space area and a parking area, and Phase II adding up to a 200,000 square foot building within the open space area and a second deck of parking over the existing parking lot; and WHEREAS, the May 1998 PDP was secured by a Development Agreement with the City; and WHEREAS, Phase I of the May 1998 PDP was completed in 2000; and WHEREAS, on May 18, 2004, the City Council approved an amendment to the original PDP, which modified the 1998 PDP to include acquisition of additional properties, construction of three new structures totaling approximately 533,000 square feet involving four phases of development, rezoning of a portion of the site from Light Industrial (I-L) to Planned Unit Development (PUD), and an amendment to the Building Height Map; and WHEREAS, on May 18, 2004 the City Council approved an Amended and Restated Development Agreement that secured the Amended PDP, set forth a time schedule for commencement of construction of each phase of the PDP, set forth terms under which Pixar would pay fees and exactions to City, and set forth obligations of Pixar to construct public improvements consisting of a 7.5-foot wide landscaped area along the Hollis Street frontage for public use and a 40-foot wide linear park along the eastern border of the site with a Class I bicycle/pedestrian path; and WHEREAS, on May 18, 2004 the City Council adopted a Mitigated Negative Declaration for the project; and WHEREAS, on May 18, 2004, the City Council adopted amendments to the Emeryville General Plan and Bicycle and Pedestrian Plan for the project, a vacation of the Emery Street Right of Way between 45th Street and Park Avenue, a vacation of a 10 foot wide Public Street and Utility Easement on the Emery Street Right of Way conditional upon Pixar’s relocation of Planning Commission Resolution Second Amendment to the Amended and Restated Pixar Development Agreement September 24, 2009 Page 2 the affected utilities, a Final Development Plan and Design Review for Phase II, and a Tentative Map for the Project; and WHEREAS, the original Final Development Plan for Phase II was not built, and on January 20, 2009 the City Council, on recommendation of the Planning Commission, approved a new Final Development Plan for Phase II which is now under construction; and WHEREAS, on August 14, 2008, the City approved the First Amendment to the Amended and Restated Development Agreement that included (i) extension of the term by five years; (ii) extension of the date for commencement of the Amended Phase II Improvements by two years, (iii) elimination of the Phase III Delay Fee and any other constraints upon the timing for the Phase III Improvements; (iv) reduction of the Capital Improvement and Services fee to a total of Five Hundred Thousand Dollars ($500,000) payable in a single installment; (v) removal of the reference to the Agency’s repurchase right under the Participation Agreement and (vi) addition of a requirement that Pixar contribute $2 million toward the Emeryville Arts and Cultural Center and sponsor a fundraising event for the Center; and WHEREAS, the City and Pixar are seeking to amend the Amended and Restated Development Agreement; and WHEREAS, the proposed amendment would allow (i) the City the right to utilize a portion of the Cultural Arts Center Contribution as a grant to a non-profit entity, to be incorporated by the City which will utilize the funds to hire personnel to assist in programming and raising additional capital funds for the Cultural Arts Center; and (ii) eliminate Pixar’s obligation to sponsor a fundraiser for the Cultural Arts Center; and WHEREAS, in light of the current economic climate, City and Pixar have agreed that it would be financially detrimental to Pixar’s existing annual fundraiser for the Emeryville Educational Fund if Pixar were to host a fundraiser event for the Cultural Arts Center as well; and WHEREAS, on September 9, 2009 a notice of public hearing was published in the Oakland Tribune and was posted and mailed to all responsible agencies and to all property owners within 300 feet of the property. WHEREAS, a Mitigated Negative Declaration (MND), and Mitigation Monitoring and Reporting Program were adopted by the City Council on May 18, 2004 and the subject amendment does not require further CEQA review. NOW, THEREFORE, BE IT RESOLVED that based upon its review and consideration of the entire record, including the testimony and documentary evidence presented at the public hearing, the staff report and all supporting documentation, the City of Emeryville Planning Commission makes the following specific findings and recommendations: Planning Commission Resolution Second Amendment to the Amended and Restated Pixar Development Agreement September 24, 2009 Page 3 (1) The proposed amendments to the Amended and Restated Development Agreement are in conformity with the following General Plan goals: Public Facilities and Services Objective C: Improve and expand social and recreational services and facilities for all segments of the community. The Arts and Cultural Center is an important project for the City. The successful renovation of the 30,000 square foot center will provide a focal point for the Emeryville arts community. Funding in the amount of $3.225 million has been appropriated in the Agency’s budget towards the estimated $7 million renovation costs, leaving a gap of approximately $4 million. Pixar’s $2 million contribution would fill 50 percent of this financial shortfall. Specifically, the proposed Amendment will result in providing the City more flexibility to effectively use the funds by being able to set up a non-profit entity and employ personnel that would facilitate in the Center’s programming and raising additional funds. (2) The proposed amendments to the Amended and Restated Development Agreement is in the public interest in that it provides substantial benefits to the City of Emeryville. The proposed amendments allow better facilitation of programming and raising funds for the Arts and Cultural Center which will be a good amenity for the citizens of Emeryville. AND BE IT FURTHER RESOLVED, that the Planning Commission of the City of Emeryville hereby recommends that the City Council approve the First Amendment to Amended and Restated Development Agreement attached hereto as Exhibit A, based upon the following findings: 1. The Second Amendment to Amended and Restated Development Agreement is consistent with the General Plan of the City of Emeryville, as amended and as recommended above. (EMC section 9-4.94.9.) 2. The Second Amendment to Amended and Restated Development Agreement is in the public interest in that it provides substantial benefits to the City of Emeryville, (EMC section 9-4.94.10.) APPROVED by the Planning Commission of the City of Emeryville at a regular meeting held Planning Commission Resolution Second Amendment to the Amended and Restated Pixar Development Agreement September 24, 2009 Page 4 on Thursday, September 24, 2009 by the following votes: AYES:_______________________________________________________________________ NOES:___________________________ABSTAINED:________________________________ EXCUSED:________________________ABSENT:___________________________________ ____________________________________ CHAIRPERSON APPROVED AS TO FORM: _______________________ RECORDING SECRETARY ____________________________________ DEPUTY CITY ATTORNEY